CONT`D

Transcription

CONT`D

JETBLUE PILOT CONTRACT
COMPARISON
Synopsis of Pay Rates, Work Rules, and Benefits for:
Alaska
American- (Allied Pilots Assoc.)
Delta
Hawaiian
Southwest- (Southwest Pilots Assoc.)
Spirit
United
Virgin America
January 2016
Prepared by the ALPA Economic and Financial Analysis Department
TABLE OF CONTENTS

Agreement Dates

Training Pay

Approx. Number of Pilots

Premium Pay

Composite Hourly Rate Charts

Junior Manning Pay

Profit Sharing

Scope Provision

Retirement and Insurance

A320 CA/FO

EMB190 CA/FO

Future Scheduled Increases

International Override


Retirement
Minimum Pay per Duty Period

Medical

Duty/Trip Ratios (Rigs)

Dental

Per Diem

Life Insurance

Minimum Lineholder Days Off

Disability

Minimum Reserve Days Off

Retiree Medical

PTO/Vacation/Sick Comparison

Monthly Vacation Distribution

Appendix

Vacation Distribution

Scope
AGREEMENT DATES
PEA “End” Date
Alaska
American
Delta: Pilots rejected a
TA in July
Delta
Hawaiian
Southwest: Pilots rejected a
TA in November
Southwest
Spirit
United
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Effective Date to Section 6 Opener
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Section 6 Opener to Amendable Date
Virgin America: Newly ALPA represented, LEC/MEC representation elections underway, bargaining underway
Jan-19
3
APPROXIMATE # OF PILOTS
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
4
COMPOSITE HOURLY
PAY RATES
A320/21, B737-800/900 12 YEAR CAPTAIN
RATES EFFECTIVE FOR JANUARY 1, 2016
$250
$240
$230
$220
$210
$200
$190
$180
$170
$160
$150
*Pay Rate Notes: Spirit shown at 15 Year Rate
6
A320 AND SIMILAR CAPTAIN SCALES
7
A320/21, B737-800/900 12 YEAR FIRST OFFICER
$180
$170
$160
$150
$140
$130
$120
$110
$100
$90
$80
*Pay Rate Notes: Spirit Max rate at 10 YR
8
A320 AND SIMILAR FIRST OFFICER SCALES
9
EMB 190/EMB195, B717 12 YEAR CAPTAIN
$220
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
**Delta and United currently do not operate the EMB190 or EMB195
10
EMB 190/EMB195, B717 12 YEAR FIRST OFFICER
$140
$120
$100
$80
$60
$40
$20
**Delta and United currently do not operate the EMB190 or EMB195
11
FUTURE SCHEDULED INCREASES

Alaska







None
None
United


None
Spirit

None
Hawaiian
Southwest

3% on 1/1/2017, 1/1/2018, and 1/1/2019
Delta


3.5% on 4/1/2016, and 1.5% on 4/1/2017
American


3% on 1/1/2017, 2% on 1/1/2018
Virgin America

None
JetBlue

None
12
INTERNATIONAL OVERRIDE PAY
Note: Each airline has different set of rules that
define the scope of “International” flying
Airline
Spirit
Application
Limited to select flying only- South of 15th parallel-
8% Override for International Flying
Delta
A flight segment between an airport locate in the Mainland United
States and either Canada or Alaska will not be considered an
international operation.
Captain
First Officer
~$12.79
~$7.20
(10 Year Captain
Rate: $159.86 X 8%)
(5 Year First
Officer Rate:
$89.96 X 8%)
$6.50
$4.50
United
Except CONUS, Canada, Alaska
$6.50
$4.50
American*
Flights over water only, plus Mexico
$6.00
$4.14
JetBlue
Override pay applies to special route qualification:
(LIR/SJO/MDE/BOG/LIM)
$5.11
$3.71
Alaska
ETOPS + International
$5.00
$4.00
$5.00
IRO:$4, FO:$3
Hawaiian
Southwest
Virgin America
Notes:
American: F/O rates are computed at the same longevity of CA's pay as other pay
components, The maximum rate is used for this table.
13
SCHEDULING, HOURS
OF SERVICE AND
OTHER PROVISIONS
MINIMUM PAY PER DUTY PERIOD
Airline
Duty Period
Average
Delta
United
American*
5:10
JetBlue
5:00
Alaska
5:00
Spirit
4:30
Southwest
4:21*
Hawaiian
4:10
Virgin America
3:30
Average Daily
Guarantee
Notes
5:15
0000-0200 carve out
5:00
5 hours per day is per calendar day,
not per duty period, and is not an
average
Includes 3 hours min per day if fly
two or more duty periods are
broken by at least one off duty
period away from base
5:39**
*Based on 5 TFP’s
**Based on 6.5 TFP’s
5 Hours on CDO’s
15
DUTY/TRIP TIME RATIOS
Duty Rig
Trip Rig
Duty Time Ratio
Scheduled Duty Time Exceptions
Trip Hour Ratio
Alaska
1 for 2
1 for 1.75
0601-2159
2200-0600
1 for 3.5
American
1 for 2
Delta
1 for 2
1 for 1.75
Hawaiian
1 for 1.67
JetBlue
1 for 2
1 for 1.75*
Southwest
1 for .74 TFP
(1 for 1.55)
Spirit
United
1 for 3.5
0600-2159
2200 to release from
duty period
1 for 2
1 for 1.75
1 for 3.5
1 for 4
*If the duty period
touches
0100 -0500
0600-2159
2200-0600
1 for 3.5
1 for 3.45 (converted
to hrs.)
1 for 4.2
1 for 3.5
Virgin America
16
HOURLY PER DIEM - EXPENSE MONEY
$3.25
Domestic
$3.25
$3.00
$3.00
$2.75
$2.75
$2.50
$2.50
$2.25
$2.25
$2.00
$2.00
$1.75
$1.75
$1.50
$1.50
$1.25
$1.25
$1.00
$1.00
United: Increase $0.05 each January 1st
International
19
17
MINIMUM LINEHOLDER DAYS OFF PER MONTH
Total
Alaska
American
Delta
Hawaiian
JetBlue
12 in 30 day bid period, 13 in 31 day bid period
10 days
(A pilot’s initial line of time will not exceed 18 days in
which a pilot is on a rotation without his consent.)
12 days
Southwest
15 days in a 30 day bid period;
16 days in a 31 day bid period
Spirit
13 Days
United
12 Days
Virgin America
N/S
18
MINIMUM RESERVE DAYS OFF PER MONTH
Total
Alaska
12 Days
American
Hawaiian
JetBlue
Southwest
13 Days (14 in 31 Day Month) For Reserve Guarantee
between 72-74:59
12 Days (13 in a 31 day Month) For Reserve Guarantee
between 75-80
12 Days
12 Days (13 in 31 Day Month)
14/15 Days
Spirit
12 Days (13 in 31 Day Month)
United
Virgin America
12 Days
Delta
19
VACATION –PAY
Vacation Pay
Pay per Day
Alaska
3:30 Hours
American
3:40 Hours
Delta
3:15 Hours
Hawaiian
3:00 Hours
Credit for line construction or RPV purposes at
the rate of two hours and
forty-five minutes (2:45)
JetBlue
5:00 Hours
Assuming an awarded vacation.
The Pilot shall be paid and credited 35 hours
per week but the Pilot’s PTO bank will only be
debited 24.5 hours per week.
Southwest
3:15 or trips dropped
Based on 3.75 TFP, converted to hours
Spirit
4:00 Hours
United
3:15 Hours
Virgin America
3:30 Hours
20
Total Vacation/Sick/PTO (Annual Hours)
PTO/VACATION/SICK ACCRUAL COMPARISON
250
5 Year Longevity Pilot
200
150
100
50
0
Vacation
Sick
PTO
*Southwest: Vacation-Based on 3.75 TFP, converted to hours, Sick- Based on 89 TFP monthly
21
350
300
250
200
150
100
50
0
Vacation
Sick
PTO
22
350
300
250
200
150
100
50
0
Vacation
Sick
PTO
23
450
400
350
300
250
200
150
100
50
0
Vacation
Sick
PTO
24
PTO VS. VACATION/SICK ACCRUAL APPENDIX
Total Vacation and Sick Hours
(Vacation Accrual X Vacation Pay per Day) + (Sick Accrual/Month X 12 Months)
Carrier
5 year longevity
10 year longevity
Alaska
73.5 hours vacation
66 hours sick
77 hours vacation
60 hours sick
45.5 hours vacation
145 hours sick
63 hours vacation
90 hours sick
84 hours vacation
105 hours vacation 122.5 hours vacation
66 hours sick
66 hours sick
66 hours sick
95.33 hours vacation 113.67 hours vacation 113.67 hours vacation
60 hours sick
60 hours sick
60 hours sick
68.25 hours vacation
91 hours vacation 113.75 hours vacation
240 hours sick
240 hours sick
270 hours sick
69 hours vacation
87 hours vacation
99 hours vacation
90 hours sick
90 hours sick
90 hours sick
American
Delta
Hawaiian
JetBlue
108 hours PTO
Southwest*
69.1 hours vacation
93.7 hours sick
84 hours vacation
48 hours sick
68.25 hours vacation
60 hours sick
Spirit
United
Virgin
America
52.5 hours vacation
60 hours sick
126 hours PTO
15 year longevity 20 year longevity
144 hours PTO
162 hours PTO
92.1 hours vacation
92.1 hours vacation 115.2 hours vacation
93.7 hours sick
93.7 hours sick
93.7 hours sick
98 hours vacation
112 hours vacation
126 hours vacation
48 hours sick
48 hours sick
48 hours sick
68.25 hours vacation 113.75 hours vacation 113.75 hours vacation
60 hours sick
60 hours sick
60 hours sick
70 hours vacation
60 hours sick
70 hours vacation
60 hours sick
70 hours vacation
60 hours sick
*SWA: Vacation-Based on 3.75 TFP, convert to hours, Sick-Based on 89 TFP monthly
MONTHLY VACATION DISTRIBUTION
Airlines typically have a minimum number of weeks distributed each month throughout the year in contractual
language. Other airlines have vacation accrual in which all weeks accrued for use in a particular vacation year
are allowed to be bid upon.
JetBlue is only required to allocate 2 weeks per pilot. The chart below shows the JetBlue 2015 vacation bid
last October. Please see the Appendix at the end of this comparison for further detailed contractual language.
26
TRAINING PAY
Carrier
Qualification
Continued Qualification
Distributed Training
Training (per day)
Training (per day)
Alaska
2:50*
85:00**
4:40***
American
4:00*
4:00*
Delta
Greater of 1/30 or
1/31 of ALV or trips
dropped*
3:45
Hawaiian
3:00*
4:00
JetBlue
70:00*
4:00
Southwest
4:23
4:23
Spirit
4:00
4:00
United
3:00*
3:45
Virgin
America
3:30
3:30
Notes
*Or trips dropped whichever
is greater for less than 15
days of training
58% of hourly rate for
**For more than 15 days of
credited duration of event training that is pre-posted
***3:30 per day if less than 6
hours
*Per day of actual training;
1 minute for every 2 minutes 4:03 if on Short Call, 4:13 if
on Long Call
1 minute for every 2 minutes *For entire period of training
1:00 pay for every 2:00
period
1 minute for every 3
minutes of run time
<4 hours – 2:11
4-8 hours – 4:23
Full month training is paid
93:00
*Minimum monthly
guarantee for training
Trips missed or 4:00 on day
off
1 minute for every 4
minutes**
*Per day of actual training
**Minimum of 1 hour
7 hours of credit (equivalent
Not eligible for incentive pay
to 2 days of ground school)
PREMIUM PAY

Alaska




All Voluntary Senior Available flying will pay 150%. Premium trips pay 150%.
American

The Company may designate at any time any sequence as a premium pay sequence.

Such sequence(s) will pay a premium of fifty percent (50%) over the pilot’s base hourly
pay rate

Reassignments outside the original sequence will pay at 150%

For flying into days off
Delta

200% for GS flying over the lesser of the average line value or 75 hours

Reserve on days off – single pay above guarantee for premium pay flying; days off
repaid after premium trip

Reroute premium pay penalty – 100% for additional duty periods extending into days off
for reasons within Company control.
Hawaiian

None
28
PREMIUM PAY (CONT’D)


JetBlue

150% Pay

Premium will be available to all Pilots as PTO sellback, RSAs, VDA, Emergency
Assignments (EA), RSX , and as needed by JetBlue.

Holiday pay at 200% for Christmas, New Years, and Thanksgiving
Charter Pay will be at (150%), Time and a half (1.5) for most reassignments, move-ups
and add-ons. Thanksgiving Day, Christmas Day, and New Years Day pay 1.5
Spirit


Some pilots working under old PEA’s have 78 and 70 hour pay trigger.
Southwest



Crew Move Up Pay and Open Time (Standing Available List) at 150%, Holiday Pay
($75)
United

Designated Lineholder premium pay trips (20-H-4) at company discretion,
50%/75%/100%

Ops Integrity pay if waive 2-4 hours of layover minimums
29
PREMIUM PAY (CONT’D)


United (cont’d)

MPG Increase for unused Short Calls

If crew agrees to minimum rest at layover to make on time departure - 5 hours
of incentive pay

Pilot may volunteer to extend duty day in some instances for 2.5 or 5 hours Add
Pay

Center seat deadhead 50% Add Pay

Inverse Reassignment 125% Add Pay

Add pilot with holiday off assigned or reassigned into that holiday, 5 hours Add
Pay

Reserves may volunteer for extra reserve day for 4 hours Add Pay
Virgin America

A pilot will receive incentive pay earnings for all eligible credit hours in excess of
80 for a bid period. The additional earnings will be paid at 25% of the pilot’s
base rate.

sick pay, hours (regular and catastrophic), personal days, jury duty, bereavement,
special assignments, drug testing credit, vacation ‘pay out,’ Day Off credit, and
distance learning pay are not eligible for threshold.
30
JUNIOR MANNING PAY

Alaska




150% pay for pilots who accept junior available trips
American

Reassignments on days off may trigger pay at 150%, for up to 5 hours over monthly
scheduled maximum.

Premium is only paid for time above monthly scheduled maximum

Must offer premium pay for trip selection before inversely assigning a pilot
Delta

Regular pilot inversely assigned rotation(s) will receive double pay, no credit for such
flying.

Reserve, single pay, no credit (above reserve guarantee) for the portion of such
rotations that interrupt X-days. Violated X-days are repaid at the end of the rotation.
Hawaiian

If any trip remains uncovered, after the OTSL procedures, the Company shall recall
pilots (at double the pilot’s hourly rate-200%- Recall Pay)
31
JUNIOR MANNING PAY (CONT’D)


JetBlue

For VDA, EPS & RDA, Pilots receive JRA plus Premium for a total of 190% of their
base rate.

For EA assignments, pilots receive JRA rates or 140%.
Southwest


Spirit



Junior Available pay/double-time for any involuntary assignment or
reassignments which results in a duty period n a scheduled day off
Any pilot who is junior assigned paid at two hundred percent (200%)
United

Telephone Inverse Assignment, No Conflict- Add pay of 100% of the trip’s pay
value.

Inverse Reassignment At Completion of Trip- Receives Add pay of 125% of
scheduled flight time and deadhead time of the new trip, including subsequent
reassignments.
Virgin America

Premium Pay for Operational Assignments (25% if more than 1 year of service,
$15 for less than 1 year of service)
32
PROFIT SHARING

Alaska


American


Performance-based annual targeted payout of 5% of wages
$50-$100 monthly, based on performance metrics
Delta

The Plan pays 10% of pretax income levels up to and including $2.5B and 20% over
$2.5B.

Awards allocated based on individual employee’s annual compensation as a
percentage of total annual compensation of all eligible employees

Pensionable

Monthly Incentive Program – $25 to $100 per month pensionable, based on operation
performance criteria
33
PROFIT SHARING (CONT’D)


Hawaiian

Profit Bonus Plan- target of 5% of wages

$150 per quarter (incentive plan)
JetBlue


The discretionary profit sharing program, which is subject to change, is currently equal
to the difference, if any, between: (a) the employee’s proportionate share of a pool
totaling 15% of the Airline’s annual pre-tax profits, and (b) the amount that may be
allocated equal to 5% of such employee’s Plan-eligible pay “Retirement Plus”.
Southwest

The Plan pays 15% of Operating Profit, but at a minimum 0.1% of annual compensation
for each eligible employee

Established as a money purchase defined contribution plan and employee stock
ownership plan

A uniform percentage calculated by dividing the total contribution by the total
annual compensation of all eligible employees multiplied by each employee’s annual
compensation

5 year vesting period
34
PROFIT SHARING (CONT’D)

Spirit



If the Company implements a profit-sharing/bonus plan for other employees, pilots
shall be included as participants in such plan(s)
United

For profit-sharing based on the years 2014 and beyond, the Company profit sharing
plan shall be funded with ten percent (10%) of pre-tax profit up to a pre-tax margin of
6.9% plus twenty percent (20%) of pre-tax profit in excess of a pre-tax margin of 6.9%.

Special and unusual items shall be excluded from pre-tax profit when making the
calculations

Not pensionable
Virgin America

N/S
35
SCOPE SUMMARY
“X” TO INDICATE LANGUAGE IS PRESENT RELATING TO THAT SUBJECT
See Appendix at the end of this comparison for further detailed contractual language
Merger and
FragmentationLabor
Subcontracting
Transfer of
Protections
Assets
Alter EgoChange in
Control
Domestic and
International
Codeshare
Express
Requirements
(Small Jet)
Carrier
Successorship
Alaska
x
x
American
x
x
x
x
x
x
x
Delta
x
x
x
x
x
x
x
Hawaiian
x
x
x
x
x
x
JetBlue
x
x
x
Southwest
x
x
x
x
x
x
Spirit
x
x
x
x
x
United
x
x
X
x
x
x
x
Virgin America not included in the Scope Summary
36
RETIREMENT AND
INSURANCE
RETIREMENT PLANS
Carrier
B Plan (Defined
Contribution
C Plan / 401(k)
New Hire (Defined
Contribution
American
Liquidated 8/2012
16%
16% (no match required)
United
9%
7%
Delta
13%
2%
Hawaiian
N/A
15% contribution for new hires
after 6/1/05
Alaska
N/A
13.5% (hired 1/1/2010 and
after)
13.5% (no match required)
JetBlue
N/A
5% Retirement Plus+
3% Retirement Advantage+
100% of the first 5% match
13% (subject to match,
includes 5% Retirement
Plus)+
Southwest
N/A
100% of the first 9.3%
9.3% match only
Spirit
N/A
100% of the first 9%
9% match only
*Terminated plans will receive PBGC benefits
+ Up to 5% profit sharing into retirement based on profits. Retirement Advantage paid out quarterly, Profit Sharing
paid out once annually
38
MEDICAL
Carrier
Plan Type
Monthly Pilot Contribution
Family Coverage
Contribution
Percentage
PPO (includes dental)
$373.26
20%
HDHP/HSA (includes dental)
$210.26
14%
PPO- Value
$496.88
N/S
HRA-Standard
$298.73
N/S
HDHP/HSA- Core
$260.40
N/S
PPO-DPMP
$528
22%
HRA
Gold
$327
21%
HDHP-HSA
Gold
Silver
Bronze
$310
$176
$119
23%
14%
10%
HMO
$180
N/S
PPO
$180
14%
Alaska
American
Delta
Hawaiian
39
MEDICAL (CONT’D)
Carrier
JetBlue
Spirit
Southwest
United
Plan Type
Family Coverage
Contribution
Percentage
HRA- Green Plan
$316
21%
HDHP/HSA- Blue Plan
$399
26%
POS- Plan A (includes
Dental)
$448.38
23%
HRA (includes Dental)
$270.66
15%
EPO (includes Dental)
$383.48
39%
POS- Plan B (includes
Dental)
$618.14
29%
HDHP/HSA
$15
N/S
PPO- Choice Plan C
$169
N/S
PPO- Choice Plus Plan
$273
N/S
PPO
$350
$750
$1,250
Traditional
Core
EPO-BYO (in-network only)
$322.36
$258.10
$179.02
$338.15
$307.97
19%
18%
12%
19%
19%
Varies
N/S
EPO- Core
$318.47
19%
HDHP/HSA- Core
$300.23
19%
40
MEDICAL (CONT’D)
Family Deductible Innetwork/Out-of-network
Co-Insurance Innetwork/Out-of-network
Family (or pp) OOP Limit
In-network/Out-of-network
$500/$700
80%/60% R&C
$4,000/$6,000
$2,500/$5,000
80%/60% R&C
$7,000/$14,000
PPO- Value
$1,050/$4,650
80%/60% R&C
$6,050/$19,650
HRA-Standard
$2,400/$9,000
80%/60% R&C
$7,400/$24,000
HDHP/HSA- Core
$4,000/$8,000
80%/60% R&C
$8,000/$24,000
PPO-DPMP
$700
80%/70% R&C
$4,700
HRA
Gold
$3,900/$7,800
80%/60% of 140% of MNRP
$9,900/$19,800
Includes Rx cost-sharing
HDHP-HSA
Gold
Silver
Bronze
$2,600/$5,200
$7,800/$15,600
$9,300/$18,600
80%/60% of 140% of MNRP
$7,600/$15,200
$12,800/$25,600
$12,900/$25,800
Includes Rx cost-sharing
HMO
N/A
100% after $10 copayment
$4,500
PPO
$300
90% inpatient, outpatient 80%, 70%
R&C
$7,800
Carrier
Plan Type
Alaska
PPO (includes
dental)
HDHP/HSA
(includes dental)
American
Delta
Hawaiian
41
MEDICAL (CONT’D)
Carrier
JetBlue
Spirit
Southwest
United
Co-Insurance Innetwork/Out-of-network
Family (or pp) OOP Limit
In-network/Out-ofnetwork
$2,600/$3,900
80%/60% R&C
$8,600/$12,900
Includes all cost-sharing
POS- Plan A (includes
Dental)
$1,200/$2,400
90%/70% R&C
$7,950/$15,900
HRA (includes Dental)
$4,500
90%/60% R&C
$7,500/$10,500
EPO (includes Dental)
None
POS- Plan B (includes
Dental)
$750/$1,500
HDHP/HSA
$3,000
80%/60% R&C
$12,000/$16,500
Includes copayments,
including for Rx
PPO- Choice Plan C
$2,000/$6,000
80%/60% R&C
$9,600/$24,000
PPO- Choice Plus Plan
$750/$2,250
85%/60% R&C
$8,600/$21,500
PPO
$350
$750
$1,250
Traditional
Core
$1,050/$9,000
$2,250/$9,000
$3,750/$9,000
$500
$600/$1,200
80%/60% R&C
EPO-BYO (in-network only)
Varies
Choice of $25/$40
$13,200/$20,200
$13,200/$20,200
$13,200/$18,200
$13,200
$13,200/$17,200
Includes deductible and
separate Rx OOP
$13,200
EPO- Core
$400
90% after copay
$13,200
HDHP/HSA- Core
$5,000/$10,000
95%/60%
$6,000/$12,000
Plan Type
HRA- Green Plan
HDHP/HSA- Blue Plan
$17 copayment. No
coverage out of network
100% after $11 copay, 80%
R&C
$3,598
$3,000/$6,000
42
DENTAL
Carrier
Plan Type
Family Coverage
Contribution
Percentage
Alaska
Indemnity
Included in medical contribution
--
$50
American
Indemnity
Plan 1: $8.00
Plan 2: $0
36%
--
$50 per person, waived for
ortho
Delta
PPO
Basic: $24
DPMP: $30
Comprehensive: $45
43%
30%
30%
22%
$0
$125
$240
Hawaiian
PPO
None required
--
None
$73.50
53%
$150
JetBlue
Spirit
Southwest
United
DPPO
DMO
$56.42
$56.42
Indemnity
Regular: $0
Basic: $5
Optional: $42
PPO
Core PPO: $31.05
PPO: $18.41
PPO Plus: $21.33
DHMO: $12.27
$179
None
--
$50 per person
20%
$100
$150/$300
$100/$200
$0
43
DENTAL (CONT’D)
Maximum Lifetime Ortho
Benefit In-network/Out-ofnetwork
Carrier
Plan Type
Maximum Annual Benefit In-network/Outof-network
Alaska
Indemnity
$1,750
$2,000
American
Indemnity
$1,000
$1,000
Delta
PPO
Basic: $600
DPMP: $2,000
Comprehensive: $2,500
N/A
$3,000
$3,000
Hawaiian
PPO
Unlimited
$1,500
JetBlue
PPO
$1,500
$1,500
Spirit
DPPO
DMO
$1,500
Per schedule
$1,500
Per schedule
Indemnity
Regular: $1,000
Basic: $1,500
Optional: $2,000
Regular: $1,000
Basic: $1,500
Optional: $2,000
PPO
Core PPO: $2,000
PPO: $1,500
PPO Plus: $2,000
DHMO: Unlimited
$2,000
Not covered
$2,000
Unlimited
Southwest
United
44
LIFE INSURANCE
Carrier
Pilot Coverage
Alaska
$150,000
American
$70,000
Delta
$676,000
Hawaiian
$100,000
JetBlue
$100,000
Spirit
Captains: $100,000, First Officers: $75,000
Southwest
$50,000
United
Hourly Rate X 1,026, Minimum of $100,000
*Notes
Additional $105,000 payable if pilot dies prior to age
50 or after age 50 with no spouse (or married less
than 12 months prior to death)
45
DISABILITY
Carrier
Benefit
Maximum Amount
Benefit Period End
Pilot Cost
Alaska
Short Term: 40% X
weekly earnings (option
to purchase additional)
Long Term: 50% of last
full 12 months
Short Term: up to $1,000/week
for 26 weeks
Long Term: Age 65
Short Term: $26/mo for
$500 buy up coverage
American
Short Term: 40% X
weekly earnings
Long Term: For
disabilities occurring after
10/2012: 60% x avg.
monthly compensation in
last 12
Short Term: 26 weeks
Long Term: $8,000/mo
FAA mandatory retirement age,
limited to 24 months for
mental/nervous and/or chemical
dependency (suspended during
furlough)
None
Delta
50% x FAE (highest 12
consecutive months of
last 36)
Short Term: 26 weeks
FAA mandatory retirement age,
limited to 30 months for mental
illness or substance abuse, 54
months lifetime
None
Lifetime benefit, limited to 24
months for substance abuse
None
Hawaiian
10% x last year earnings at
2 years of service, increased
5% per year to 50% at 10 Cannot exceed normal retirement
years of service
benefit
No Short Term Plan
46
DISABILITY (CONT’D)
Carrier
JetBlue
Spirit
Benefit
Maximum Amount
Short Term: Choice of
Short Term: Low/Core max
3 plans
benefit of $1,500 for 26
Long Term: 55% x
weeks, High max benefit of
gross compensation
$3,000 for 26 weeks
plus optional buy-up of
Long Term: $15,000/month
5%
Long Term Basic: 60% x
earnings
Option to buy up
Long Term: $5,000/month
Buy up to $10,000/month
Benefit Period End
FAA mandated retirement age,
limited to 12-60 months if
disability occurs at age 62 or
later. 24 months due to mental
illness
Long Term: SSRA if disabled prior
to 65, limited to 24 months/lifetime
for mental illness and substance
abuse
Pilot Cost
Short Term: 100% pilot
paid (after tax)
Long Term: None for
basic coverage; buy-up
100% pilot paid with after
tax dollars $0.43/$100
compensation
No cost for Basis, Buy up
$1.95/$100
Short Term: No plan
Short Term: No plan
Southwest
United
Long Term: Age 60 or age 65 if
Short Term: Pay rate X Short Term: Min/Max benefit
Short Term: $30-$50/month
SSD, limited to 12 months for
100 trips
of $1,000/$6,000 per month
funded by pilots
disability resulting from mental,
for
12
months
emotional,
behavioral
or
stress
Long Term: 66 2/3% x
Long Term: Pilot pays
earnings
Long Term: $12,500/month related disorders or from alcohol or
$0.97/$100
drug addictions
Long Term: 50% x
Monthly earnings
Short Term: No plan
Long Term: maximum of
$8,000/month (after offsets)
Mandatory retirement age, limited to Long Term: Pilots pay 35%
12 months/lifetime for alcohol or
of cost (1.38% of hourly
substance abuse (cease upon
rate), company pays 2.58%
furlough or termination)
(income imputed)
47
RETIREE MEDICAL
Carrier
Eligibility
Benefit
Monthly Pilot Cost
Alaska
Age 45 with 60 months of
service (pre-Medicare plan
only)
Same plan as actives until Medicare
eligibility
50% of group rate
American
Retiree age 60+ who have
provided 4 month notice of
retirement
HRA:
Notional account equal to $25/hour of
banked sick time at retirement to be used
for payment of retiree premiums
N/A
Delta
Normal (Age 60) and early
retirees (Age 50+)
Choice of Bronze HAS or DPMP until
Medicare eligibility
NR- 100% of the retiree premium or 51% of
DPMP retiree premium. ER- 100% of
retiree premium to age 60, thereafter, until
age 65, 51% of DPMP retiree premium or
100% of the premium for other plans
Hawaiian
Normal and disability retirees who
retire at age 60+ with 10+ y/s and
dependents per dependent
eligibility
Same plan as actives, coordinated with
Medicare
None, Early Retirees pay 100% of cost
48
RETIREE MEDICAL (CONT’D)
Carrier
Eligibility
JetBlue
No Plan
Spirit
No Plan
Southwest
All retirees age 55 or older, and
dependents per active pilot
dependent eligibility. 15 y/s
required for pilots retiring prior to
age 60.
United
Benefit
Monthly Pilot Cost
Early retirees - same plan as actives'
Plan C and, if elected, Basic Dental, to
Medicare eligibility. Normal retirees same plan as actives to Medicare
eligibility.
Sick leave may be traded for continued
COBRA rate for plan chosen. Rules for
sick trade based on TFP and age.
Same plan as actives until Medicare
eligibility
Retired pilot, age 50 with 10 y/s and
Also have RHA (Retiree Health
dependents per active pilot
Account)- funded during active
dependent eligibility.
employment
Also have Post Medicare Medical (3
choices to pilot)
Percentage of cost based on y/s: <20 y/s 80%; 20-24 y/s - 60%; 25+ y/s - 40%.
RHA funding: $1/hour of pilot pay (excess
DC contributions and forfeited vacation
also made to RHA)
49
APPENDIX
MONTHLY VACATION DISTRIBUTION

Alaska

(1) Minimum per Bid Period: Calculation = the number of vacation days, for that year, eligible to be
taken for each individual BPL x 3% rounded down but not less than 20 days. This minimum may be
utilized no more than three Bid Periods per year.



(2) Other Bid Periods: Vacations will be distributed evenly in all other Bid Periods. The Company may
increase the allotment in a given Bid Period should staffing allow. The number of vacation days for
each Month will be evenly distributed throughout the Month.
American

a. The Company shall make all weeks of the vacation year available in each bid status (minimum one
(1) man-month of vacation per bid month). Pilots shall be permitted to bid for vacation weeks in any
adjoining combination within a calendar month.

b. The Company shall make no less than five percent (5%) of the total vacation to be awarded
available in each bid status during any month of the vacation year, but not less than a. above.

c.
(1) In each bid status, five percent (5%) need not be applied in any month that planned ramp
hours exceed the vacation year average by more than ten percent (10%) for that bid status.


Example: total Seattle B737 Captains = 11,000 vacation days; 11,000 x 3% = 330 vacation days
per Month.
(2) Exceptions under c.(1) will not exceed ten percent (10%) of total bid status-months in the
system.
Delta

Every week of a vacation year will:

a. begin on Sunday, commencing with the first Sunday of the vacation year.

b. be available for at least one percent of the total number of vacation periods to be awarded
in a category (reduced to the closest integer, but no lower than one).
51
MONTHLY VACATION DISTRIBUTION (CONT’D)

Hawaiian

The number of vacation lines posted in each category at each domicile shall not be less than the
number of pilots in each category at each domicile multiplied by the following percentages:


a. Calendar Period Minimum Number of Pilots
 January 4 thru June 30 10%
 July 1 thru September 15 5%
 September 16 thru December 19 10%
 December 20 thru January 3 5%
JetBlue

Crew Planning will allocate no less than two (2) vacation periods per calendar year per Active
Pilot. The allocation is based on the total number of Active Pilots assigned to each Base and Seat
as follows:

1. One (1) period per Active Pilot in each Base and Seat predicated upon the expected
Active Pilots in the Base and Seat on January 1st of the vacation year. These weeks will be
equally distributed throughout the year across all biddable weeks. Due to software
limitations, weeks which touch more than one (1) Bid Period are not considered biddable.

2. One (1) additional period per pilot in each Seat and Base. These weeks will be distributed
at the discretion of Crew Planning.

3. For a Base and Seat with fewer than 48 Pilots, a minimum of one (1) vacation period per
biddable week will be allocated. This allocation will be part of the total vacation periods
offered for that Base and Seat.

4. Crew Planning may offer any additional vacation periods at their discretion.
52
MONTHLY VACATION DISTRIBUTION (CONT’D)


Southwest

In computing the Captain list for each domicile, the Company must post for bid a minimum of six
percent (6%) of the accrued vacation periods in each bid period; twenty-six and three-tenths
percent (26.3%) during June through August; and eight and eight-tenths percent (8.8%) during the
month of November and the month of December.

c. In computing the First Officer list for each domicile, the Company must post for bid a minimum
of six percent (6.0%) of the accrued vacation periods in each period; twenty-three and one-half
percent (23.5%) during June through August; and eight and three-tenths percent (8.3%) during the
month of November and the month of December.
United

Divide the aggregated Annual Vacation Election of all Pilots in the Category by seven (7), using
normal rounding. For example, an aggregated Annual Vacation Election of 4483 divided by seven
(7) equals 640.428 and rounds to 640.

At least six percent (6%) of the result from Section 11-E-3-d-(1), using normal rounding, must be
allocated to each Bid Period across Vacation Weeks with a starting date in that Bid Period. In the
example above, there are 640 Vacation Weeks so each Bid Period must have thirty-eight (38)
Vacation Weeks (6% x 640 equals 38.4 rounded to 38). Each Vacation Week must have at least
one (1) slot available for award.
53
COMPARISON OF
SCOPE/GOVERNANCE
PROVISIONS
JOB SECURITY - SUCCESSORSHIP

Alaska





A Work Protection Period commences on the date that AAG announces an intent to engage in
an Acquisition and it continues for a period measured as the total length of the duration of the
then current Collective Bargaining Agreement between ALPA and the Company (''Agreement")
(April 1, 2013 - March 31, 2018) plus one year.
B. Except as otherwise provided in this Job Protection Letter of Agreement, a furlough shall be
subject to all terms and conditions of the Agreement.
C. Terms used in this Job Protection Letter of Agreement, unless otherwise defined in this Job
Protection Letter of Agreement, have the meaning given them in Section 1 [Scope & Recognition]
and Section 2 [Definitions] of the Agreement.
D. A dispute between ALPA and either AAG or Alaska, or both, concerning interpretation or
application of this Job Protection Letter of Agreement may be heard and determined by the
Alaska Pilots' System Board of Adjustment in accordance with the procedures of Section l.G.
[Remedies] of the Agreement, and AAG consents to the jurisdiction of such System Board for such
purpose.
American


Company can conclude a Successorship Transaction after the Successor agrees in writing to
recognize the Association as the representative of the pilots, to employ the pilots in accordance
with the provisions of the Agreement and to assume and be bound by the Agreement
If the Successor is an Air Carrier or an affiliate of an Air Carrier, the Company shall require the
Successor to integrate the pre-transaction pilot seniority lists of the Company in a fair and
equitable manner within 12 months of the transaction pursuant to (Section 3 and 13 of the
Allegheny-Mohawk Labor Protective Provisions (LPPs). The requirement does not apply to the
Company’s acquisition of all or part of another Air Carrier in a transaction which includes the
acquisition of aircraft and pilots
55
JOB SECURITY – SUCCESSORSHIP (CONT’D)

Delta




Hawaiian




PWA binding upon any successor, including without limitation, any merged company (s)
If an affiliate or successor did not employ a pre-existing airmen group, the pilot list of the merged
operation will consist of Delta pilot system seniority list followed by hired by affiliate/successor.
If an affiliate/successor employed pre-existing airmen, the pilot lists will be integrated pursuant to
Association merger policy
Binding upon any Parent, Affiliate or Successor.
The Company and its Affiliates shall require any successor, assign, assignee, transferee,
administrator, Executor and/or trustee to employ the pilots in accordance with the provisions of
the Agreement
The Company agrees to give written notice of the terms of this Agreement to a proposed
Successor, before concluding any Successorship Transaction. The Agreement and recognition of
the Association is assumed by the Successor(s) and that the pilots will be employed in accordance
with the provisions of this Agreement.
JetBlue


In the event of a Transactional Event, the Airline shall require any successor to assume the existing
rates of pay, Pilot’s seniority, and work rules in place and to employ the Pilot in accordance with
the terms and conditions of this Agreement.
Entire Agreement Between the Pilot and the Airline. The Agreement and all of the provisions
thereof shall be binding and insure to the benefit of each of the parties thereto and their
respective successors and permitted assigns.
56
JOB SECURITY – SUCCESSORSHIP (CONT’D)


Southwest

This Agreement will be binding upon their successors, administrators, executors, transferees and
assigns.

The Company will give written notice of the existence of this Agreement to any proposed successor.

The successor shall meet promptly with the Association to negotiate implementation and any other
“Fence Agreement” to be effective prior to the merger.
Spirit


Binding upon any successor or merged company. The Company shall notify the Association of a
successorship transaction within (3) days after the execution. Will provide a copy within (10) days
after execution.
United

The Agreement shall be binding upon a Successor

Successor shall employ all the pilots of United on the seniority list in accordance with the provisions of
the agreement
57
JOB SECURITY – MERGER AND LABOR
PROTECTIONS

Alaska






Seniority Lists: Association Merger Policy if both pre-transaction groups are represented by the
Association.
If the other pre-transaction pilot group is not represented by the Association, then Sections 2.a., 3 and 13
of the Allegheny-Mohawk LPP’s shall apply.
ALPA shall complete the seniority integration and give an integrated seniority list to the Company as
expeditiously as is reasonable. No later than one (1) year from the date of closing if pre-transition groups
are not both ALPA.
Collective Bargaining Agreements: The respective pilot collective bargaining agreements shall be
merged into (1) agreement. If the parties have not reached a single pilot collective bargaining
agreement, the parties shall negotiate until they have reached agreement or, determined to have
reached impasse by a mediator. The parties will submit all issues open to (3) neutral arbitrators. The
interest arbitration hearing shall be completed within (3) months, and the panel’s decision shall be issued
no later than (30) days.
Fleet: The aircraft and operations of each pre-transaction airline shall remain separated until integrated
Pre-Acquisition Status: Pending the merger of the preacquisition carriers and the pilot collective
bargaining agreements and seniority lists, there shall be no decrease in the Company’s pre-acquisition
annualized block hours flown by the Pilots or pre-acquisition annualized available seat miles or preacquisition number of aircraft flown by the Pilots.
58
PROTECTIONS (CONT’D)

American



Pilots must receive advance written notice and be given the opportunity to make a competing
proposal
Successor must agree in writing to recognize the Association as the pilot representative and must
integrate the pre-transaction seniority list in a fair and equitable manner within 12 months of the
transaction
Delta

Provides certain protection rights to pilots if a substantial portion of the carrier is sold to, acquires,
or is merged with another entity, such as:
 Continued employment
 No Change in contract until operations are merged
 Negotiated Changes to contact for merged operations
 Equitable seniority list merger
59

Hawaiian

The pilots will have the protective provisions specified in Section 2, 3, and 13 of the Allegheny-Mohawk
merger conditions as a material and irrevocable written condition of any future merger or acquisition.

a. Bind all parties to the transaction.

b. The Association and affected pilots shall have required rights and standing to invoke said LPP,
provided that, with respect to integration of seniority lists between groups represented by the
Association, the Association merger policy shall be applied according to its terms before Section
13 of the said LPP.

An “Adverse Transaction” means: (a) any changes made in operations within two (2) years that reduce
the block hours flown during any 12 month period by +15% or reduce the # of Company aircraft to
fewer than (20) ; (b) a sale of substantially all of the equity securities or assets of the Company; or (c) a
merger of the Company with or into another entity

In the event that an “Adverse Transaction” occurs then, in addition to all other rights the Association
shall have the right to (A) extend the duration up to (2) years past the Change of Control date, if an
Operational Reduction, or two (2) years past the Adverse Transaction date in the event of a Sale or
Merger; and (B) obtain an agreement to which no active pilots shall be furloughed from Adverse
Transaction through the amendable date, except for furloughs that occur in the ordinary course.

In addition, either (i) issue to pilots common shares having an aggregate market value of
$1,500,000 at the time of the Adverse Transaction, or (ii) pay $1,500,000 in cash.
60

Hawaiian (cont’d)


JetBlue


In the event of a Merger, the furlough protection shall only be required of the Company until
such time as the seniority lists and collective bargaining agreements of the merged companies
are combined
If the Airline, directly or indirectly through an Affiliate, acquires another Domestic air carrier or
builds on its own or organically launches a Domestic air carrier (i.e., a Subsidiary or Affiliate
engaged in scheduled air passenger service or air charter operations), then the Airline will
arrange for the integration of the two carriers’ seniority lists in accordance with the method of
seniority integration set forth in Sections 15(J)(i)-(viii) herein unless:

(i) it does not operate an aircraft with a maximum certified seat configuration of fifty (50)
seats or more; or

(ii) the total aggregate annual ASMs of such domestic carrier(s), cumulatively, does not
exceed 10% of the Airline’s annual ASMs at any time.
Southwest

In the event of a transaction(s) with an air carrier/person/entity, resulting in an operational
merger, the Company will require to offer full-time regular employment to all pilots, provide the
seniority integration procedures under Sections 3 and 13 of the “Allegheny-Mohawk”, and
maintain the statutory status quo of rates of pay, rules and working conditions pending such
merger.
61


Southwest (cont’d)

Pending separate operations prior to the operational merger and integration of collective
bargaining agreements/seniority lists, shall be no longer than (24) months, the successor shall keep
separate the flight operations and will not transfer or interchange crews, equipment and/or routes
and shall ensure that all Company aircraft on hand are operated only by pilots on the Southwest
List.

Before seniority lists are integrated in accordance with this section, no pilot on the SWA Master Pilot
Seniority List will be furloughed.
Spirit

In the event of any merger of the Company, acquisition of the Company by another airline, or
acquisition by the Company of another airline, the parties will make best efforts to integrate the
lists fair and equitable through collective bargaining. In the event of failure to agree, the dispute
shall be resolved with Sections 2, 3, and 13 of the Allegheny- Mohawk LPP, except Integration of
the seniority lists shall be governed by the Association Merger Policy if both pre-transaction pilot
groups are represented by the Association.

Upon the announcement to negotiate appropriate fence agreement and to implement a
seniority integration process as described in Section 1.D.1 above.
62

United

Following announcement of a Merger Transaction, the Carrier Parties shall promptly commence
negotiations with the Association and the collective bargaining representative, if any, of pilots employed
by the Other Air Carrier for a Transition and Process Agreement.

The flight operations of the Company and the Other Air Carrier shall remain separated, with pilots
employed by each carrier operating each carrier’s pre-merger aircraft under the existing collective
bargaining agreement(s) and seniority lists, until the implementation of an integrated seniority list.

The Carrier Parties shall provide the pilots employed by the Company and the Other Air Carrier with the
seniority integration rights governed by Association Merger Policy if both pre-transaction pilot groups are
represented by the Association and by the McCaskill-Bond Amendment and Sections 3 and 13 of the
Allegheny-Mohawk Labor Protective Provisions if both pilot groups are not represented.

The Carrier Parties will forbear from interchanging or transferring pilots or aircraft between them.

The Carrier Parties will assure that until the Operational Merger Date the United Pilots will have the right to
operate all aircraft on hand at the Company, all aircraft on firm order to the Company or an Affiliate of
the Company and all aircraft acquired by the Company after the public announcement of the Air Carrier
Transaction

The Carrier Parties will assure that block hour ratios of Scheduled aircraft block hours of Company Flying (i)
on single-aisle aircraft, and (ii) on twin-aisle aircraft, to Scheduled aircraft block hours operated by each
Air Carrier in the Air Carrier Transaction (x) on single-aisle aircraft, and (y) on twin-aisle aircraft, respectively,
will in each case equal or exceed ninety-five percent (95%.
63

United (cont’d)

The Carrier Parties will meet promptly with the Association to negotiate the other possible fence,
protective, and transition terms to be in effect until the Operational Merger Date.

If the Company disposes of or transfers to an air carrier (the “Transferee”) (by sale, lease or other
transaction, whether directly or indirectly through an Affiliate or lessor or vendor to the Transferee) either (i)
seventy-five percent (75%) or more of the gates and other facilities used in Company Flying at any
Company Hub or (ii) aircraft or route authority which produced fifteen percent (15%) or more of the
Company’s operating revenues, block hours, or ASMs: The Company shall require the Transferee to offer
pilot employment to eligible United Pilots

The Company shall require the Transferee to provide the Transferring Pilots with the seniority integration
rights provided in the McCaskill-Bond Statute and Sections 3 and 13 of the Allegheny-Mohawk LPPs except
that the integration of the Transferring Pilots into the Transferee’s seniority list shall be governed by
Association Merger Policy if both pre-transaction pilot groups are represented by the Association.
64
JOB SECURITY – SUBCONTRACTING

Alaska

Not Listed

Pilot flying includes all revenue and non-revenue flying of Company or Company affiliate; no wet
leasing, subcontracting or chartering of pilot flying
 American
 Delta

No contracting or subcontracting without prior written consent by DAL MEC

Not Listed

Not Listed

The Company will not engage in Subcontracted Revenue Flying

The Company may assign or contract out revenue flying of <= (90) days/occurrence if the
company does not have sufficient aircraft/pilots to perform the revenue flying, and no pilot is
furloughed as a result of such contracting. The Company shall provide prior notice of the flying to
the Association
 Hawaiian
 JetBlue
 Southwest
 Spirit
 United



The agreement will also cover Flight Instructor work and that work can only be performed by
United Pilots. There will be no subcontracting of work.
May not engage in subcontracted revenue flying on the international routes
Neither the Company nor a Company Affiliate shall enter into any agreement or arrangement
with any person who is not employed by the Company to conduct or supervise United pilot
training or to utilize United training facilities to train other pilots
65
JOB SECURITY – FRAGMENTATIONTRANSFER OF ASSETS

Alaska


American


Not Listed
Pilots transfer with seniority integration rights if the Company sells 20% or more of its asset value to
another carrier
Delta

Fragmentation Transaction: Sale of assets that produce >=12% of operating revenue, block hours, or
ASM’s during the 12 months prior

At Association request, require the Company and transferee to:

Employ # TBD Delta pilots based on the crewmembers required

Offer employment to eligibility criteria determined by ALPA and the Company, or an
arbitrator.

Seniority integration procedures pursuant to ALPA Merger Policy or Allegheny-Mohawk Labor
Protective Provisions.
66
JOB SECURITY – FRAGMENTATIONTRANSFER OF ASSETS (CONT’D)

Hawaiian

If, within a (12) month period, the Company sells, transfers or disposes in a series of transactions
assets, net of asset purchases or acquisitions (i) which constitute (20%) or more of the assets of the
Company, or (ii) whose sale directly or indirectly results in a reduction of company block hours or
available seat miles by twenty percent (20%) a ("Triggering Event"), then:

a. In the event (i) another carrier or (ii) an Entity following its acquisition of the Company's
assets purchases or acquires any aircraft, international route or authority of the Company or
an Affiliate that constitutes a Triggering Event, Transferring Pilots shall be offered the
opportunity to transfer. The # of transferring pilots shall be determined by calculating the
average pilot staffing, rounded to the nearest whole number, over the prior (12) months

b. The Transferring Pilots shall be selected on the basis of seniority; provided that a pilot shall
be deemed "qualified" to operate the aircraft transferred; and

c. The Company and its Affiliates shall require the Transferee: (i) to employ the Transferring
Pilots under rates of pay, rules and working conditions no less favorable; and (ii) to integrate
the Transferring pilots pursuant to Association Merger Policy or pursuant to Sections 3 and 13
of the Allegheny- Mohawk LPP. Such seniority integration may be completed after such
transfer; and

d. Any pilot who transfers to the Transferee shall be required to resign
67

JetBlue

A “Transactional Event” = a change in beneficial or record ownership, or direct or indirect control


(i) (a) the sale, transfer or other disposition of substantially all of the assets, or (b) a merger,
consolidation or other reorganization, unless securities representing 50%+ of the voting power
of the successor corporation are immediately owned, directly or indirectly
(ii) any person/group directly or indirectly acquires during the 12-month period ownership of
stock of the Airline possessing 30%+ voting power;

(iii) the acquisition, directly or indirectly of beneficial ownership of 50%+ securities of the
combined voting power pursuant to a tender or exchange offer;

(iv) a change in the composition of the Board of Directors of the Airline (the “Board”) over a
period of 24 consecutive months

(v) a plan of complete liquidation or dissolution of the Airline.

Upon the earlier of (a) the execution of an intent contemplating a transaction, or (b) the approval
by the Board of a transaction, resulting in a Transactional Event the Airline will establish a fund for
its pilots not less than $2,000,000 to be shared on a pro rata basis on the date of the occurrence of
a Potential Transactional Event; The fund is used for the sole purpose of supplementing any legal
expenses during the seniority integration process.

If as result of a Transactional Event, the Pilot is furloughed or terminated by the Airline or its
successor, the Pilot shall receive, a severance payment equal to one (1) year’s salary. The Pilot
shall not forfeit any recall rights, in order to receive the severance pay and shall retain the
severance pay, in full, if the Pilot is recalled.
68

Southwest


Spirit


In the event of a transaction(s) with an air carrier/person/entity, resulting in the Company
disposing of and/or transfers, either (a) 25+ aircraft, or (b) Company assets that reduce daily
scheduled block of 500+ hours, the Company will require an offer of employment to # of pilots
whose identity shall be determined, (# positions =average monthly pilot staffing utilized (12)
months prior); negotiate/arbitrate under Allegheny-Mohawk Section 13, the identity or # of
transferring pilots, and integrate the two groups with Sections 3 and 13 of Allegheny-Mohawk,
when the acquiring carrier integrates pre-merger operations.
Not Listed
United

Pilots transfer with seniority integration rights if the Company disposes of or transfers to an air
carrier aircraft or route authority which produced 20% or more of the Company’s operating
revenues, block hours or ASM’s during the 12 months before the date of the agreement to
transfer the aircraft or route authority, net of revenues, block hours or ASM’s that are produced
by aircraft or route authority introduced during those 12 months. Requiring the Transferee to offer
pilot employment to eligible United Pilots.
69
JOB SECURITY – ALTER EGO-CHANGE IN
CONTROL

Alaska



Not Listed
American

Neither the Company nor an Affiliate shall, without the Association's prior written consent,
enter into any transaction, agreement, or arrangement, except as expressly permitted in
Section1.D. below, that permits or provides for:

(1) any form of contracting out or subcontracting out of any Company flying covered by
subsection C.1., or any wet leasing from an entity or any chartering of such flying from an
entity; or

(2) a Comprehensive Marketing Agreement with a Domestic New Entrant Carrier other than a
Domestic Air Carrier with which the Company has implemented a codeshare agreement
under Section 1.G.

Nothing in this provision C.1.b. shall be construed to permit any other transaction that would
violate this provision C.1.
Delta

In the event any entity acquires control of the Company or any affiliate carrier that operates
other than permitted aircraft types, ALPA may:

Serve a Section 6 notice to reopen all or part of the PWA

Extend the duration up to 3 years past amendable date with 3% annual wage
increases
70
JOB SECURITY – ALTER EGO-CHANGE IN
CONTROL (CONT’D)

Delta (cont’d)

ALPA to make competing proposal under reasonable conditions

Control: If entity A owns securities that constitute and/or are exchangeable for more than 30% of
entity B


49% with respect to the Company’s interest in a foreign air carrier
Hawaiian

In the event a “Change of Control” occurs and within (2) years (i) replaces a majority of the
directors of the Company or of Hawaiian Holdings, or (ii) directs Holdings’ board and/or influences
the operations of the Company then:

(a) the Association shall have the right to extend the duration of the Agreement up to (2)
years from the Change of Control Event; and

(b) Holdings and the Company either (i) issue to pilots common shares of Holdings having an
aggregate market value of $1,500,000, or (ii) pay $1,500,000 in cash.

If Holdings elects to issue common stock it shall be issued within five (5) business days. If Holdings
elects to issue cash, it shall do so no later than eight (8) business days. The stock or cash shall be
allocated based on W-2 wages for the tax year immediately preceding the issuance of the stock.

A “Change of control” occurs through transaction(s), (i) acquires more than 40% of the capital
stock, or (ii) obtains the right to elect the majority of Holdings’ directors.
71
JOB SECURITY – ALTER EGOCHANGE IN CONTROL (CONT’D)


JetBlue

In the event of a Transactional Event, regardless of whether it is anticipated to result in the merger of the
Airline’s operations with those of another air carrier, the Airline shall require any successor to assume the
existing rates of pay, Pilot’s seniority, and work rules in place at the time of the Transactional Event and to
employ the Pilot in accordance with the terms and conditions of this Agreement.

Prior to the consummation of any Transactional Event that would result in the acquisition of the Airline by
another U.S. certificated air carrier or its Parent or Subsidiary (“Acquiring Entity”), the Airline and the
Acquiring Entity will agree in writing and as an irrevocable condition of such Transactional Event that the
surviving air carrier(s) will integrate the pre-transaction operations of the Airline and the Acquiring Entity no
later than twenty-four (24) months following the closing of the transaction, subject to any required FAA or
other regulatory approvals, and provided that the seniority lists of the pre-merger air carriers’ employees
have been fully integrated, any disputes over the integrated seniority lists have been fully resolved and
the surviving carrier has implemented employee work rules and scheduling provisions for totally integrated
airline operations.
Southwest

In the event of a purchase/acquisition of another air carrier the Association and the Company will meet
to discuss the impact of the purchase or acquisition
72
JOB SECURITY – ALTER EGO-CHANGE
IN CONTROL (CONT’D)




1. The rates of pay, rules, and working conditions will not be open for collective bargaining in the
event of a purchase or acquisition of another company

2. If hiring pilots of the company which it is acquiring, those pilots will be placed on the SWA List in
accordance with Sections 3 and 13 of Allegheny-Mohawk.

If the Company transfers the control, operation or management of substantially all of the assets to
another person, entity, company, corporation, or firm, the Company will require such transferee to
assume the obligations of this agreement and to offer full-time regular employment.

The Company shall not establish any new airline or subsidiary or acquire a Controlling Interest in any air
carrier unless performed by SWA pilots
Spirit


Reasonable advance notice of a proposed purchase or acquisition followed by disclosure of the details
of any material agreements
The Company shall not create or acquire an “alter ego”
United

In the event the Company or its Parent receives a proposal (a “Proposal”) for a transaction which would
result in a Successor if completed, and the Company or its Parent determines to pursue or facilitate the
Proposal, the Company or its Parent will in good faith seek to provide the Association with the
opportunity to make a competing Proposal.
73
JOB SECURITY – ALTER EGO-CHANGE
IN CONTROL (CONT’D)

United (cont’d)

shall require any successor, assign, assignee, transferee, administrator, executor and/or trustee of the
Company or its Parent (a “Successor”) resulting from the transfer (in a single transaction or in multistep
transactions) to the Successor of the ownership of fifty percent (50%) or more of the Equity of the
Company or Parent or fifty percent (50%) or more of the value of the assets of the Company, or Control
of the Company (a “Successorship Transaction”), to continue to recognize and treat with the
Association as the representative of the United Pilots, to employ or cause the Company or Successor, as
applicable, to continue to employ the United Pilots in accordance with the provisions of the Agreement
and to assume and be bound by the Agreement

the Company shall not continue any portion of an existing agreement or arrangement, or enter into any
new agreement or arrangement, for creation of a new Foreign Air Carrier over which the Company has
Control, and which operates Flights between the United States and Territories and any Foreign Airport
74
JOB SECURITY – DOMESTIC AND
INTERNATIONAL CODESHARE

Alaska


Not Listed
American

The Company may codeshare with and/or enter into franchise type agreements with non-owned
Air Carriers that operate both (1) Commuter Aircraft and (2) aircraft that are not Commuter
Aircraft with respect to Commuter Aircraft operated by such non-owned Air Carriers and so long
as any such Commuter Aircraft are operated in accordance with the limitations set forth in this
Section 1.D.

The Company may enter into and maintain codeshare agreements with Domestic Air Carriers
under the following conditions:

Alaska Airlines

The Company may engage in unrestricted codesharing with Alaska Airlines (AS), except that the
Company’s current or future designator code may not be placed on AS code flights between
Hawaii and each of DFW, LAX, SAN and ORD.

If the Company is unable to conclude and/or maintain a codeshare agreement or agreements
with Alaska, an equivalent number of ASMs available for codeshare on Alaska under (1) above will
be added under Paragraph 1.G.2.a. below, subject to the same conditions with respect to flights
between Hawaii and each of DFW, LAX, SAN and ORD covered by Section 1.G.1.a.(1).
75
INTERNATIONAL CODESHARE (CONT’D)

American (cont’d)

Hawaiian Inter-Island

American Airlines may codeshare with Hawaiian Airlines (or its successor) without restriction on
flights operating wholly within the Hawaiian Islands, so long as American Airlines operates a
minimum average of ten (10) flights per day between the mainland and Hawaii measured on a
rolling look-back period of twelve (12) months.

Alternatively to Hawaiian Airlines (or its successor), the Company may place its current or future
designator code on flights operating wholly within the Hawaiian Islands provided that the Air
Carrier (or its parent) upon which the code is placed is not an Affiliate (other than a Commuter Air
Carrier) of the Company, or categorized as a “Group III” Air Carrier by the U.S. Department of
Transportation. Further, if any such Air Carrier upon which the code is placed also operates
between Hawaii and the U.S. mainland, and if the Company operates fewer than 10 daily
frequencies between the contiguous 48 states and Hawaii, the Association shall have the right to
withdraw its consent to codesharing with such Air Carrier under this provision.

On a quarterly basis, the Company will inform the Association of the number of daily frequencies
the Company is operating between Hawaii and the U.S. mainland.

The total monthly ASMs of flights with all such Domestic Air Carriers on which the Company places
its current or future designator code during any twelve month period (excluding any placement of
the Company’s current or future designator code under Sections 1.G.1.a. and b.) shall not exceed
fifty percent (50%) of domestic Company mainline scheduled monthly ASMs during the same
rolling twelve (12) months.

The Company may not codeshare on flying by a Domestic Air Carrier on flights between
Company Hubs (as specified in Section 1.D.4.h.), except for flying between a Company Hub and a
Domestic Air Carrier’s hubs
76

American (cont’d)

International Codesharing

The Company may place or maintain its current or future designator code on flights by Foreign
Carriers under the following conditions:

Effective July 1, 2012, the Baseline for International Flying shall be _____ block hours [the number of
International block hours scheduled during July 1, 2011 through June 30, 2012].

International Baseline for July 1, 2013 and Beyond. Effective July 1, 2013, and each July 1
thereafter, the International Baseline for that year shall be calculated as follows:

(1) The International Baseline for the previous year shall be adjusted upward by the total block
hours of International Flying scheduled by the Company during that year in excess of the previous
year’s International Baseline, except that the block hours attributable to new routes that have not
been flown three consecutive years or more, on either a year round or seasonal basis, shall not be
added to the Baseline.

If the new route is still being flown during the year July 1, 2016 to July 1, 2017, then all those block
hours attributable to flying between the third anniversary of the initiation of the flight and July 1,
2017 shall be added to the baseline for July 1, 2017. If the route is still being flown during the year
July 1, 2017 to July 1, 2018, then all the block hours attributable to the flight that year not previously
added to the baseline in the preceding year shall be added to the baseline for July 1, 2018.

No Codesharing on Routes That Could Earn Adequate Return on Invested Capital
77

Delta

Company may enter into domestic and international Marketing Agreements, Codeshare Agreements,
and profit/loss or revenue sharing Agreements subject to restrictions

Aircraft under 76 seats defined by MGTOW and certificated capacity.


Restrictions on number of 50/70/76 seat aircraft

76 seat aircraft can only grow with mainline fleet small narrow body growth

Restrictions on flights to/from hubs, between hubs, and stage length
Company may not place DL code on more than 40% of the passenger seats in any month on any pair
of flight segments of a foreign carrier.

Other restrictions apply regarding seat capacity and geographic areas

Company may not codeshare out of Japan to Asia with foreign carriers unless it operates 316 weekly
Narita slots.

Neither the Company nor an affiliate will place its code on the flight of a foreign air carrier that
operates a flight in which it takes on for hire persons, property or mail at any point in the United States
that is destined to be transported to any other point within the United States (Alaska cargo exceptions
apply)
78

Delta (cont’d)

The Company may only enter Profits/Loss Sharing or Revenue Sharing Agreements with an International
partner whose home country is served by the Company at least four round trips per week. Delta
scheduled block hours for the previous 12 months must be maintained on a three month rolling basis
between the US and the home country of such international partner If no production balance
agreement is reached with ALPA then the Company’s share of revenue block hours flown under the
profit/loss sharing agreement will be at least 75% of the Company’s share of revenue subject to the
profit/loss sharing agreement and generated by flying conducted on segments subject to the
profit/loss sharing agreement in that twelve-month period.

Alaska Marketing Agreement –


No DL code on AS segments between Delta Hubs.

Hub to hub ratio restrictions

No DL code on more than 35% of AS seats or 86 seats

Restrictions on minimum flying to state of Alaska
Delta / Air France/ KLM / Alitalia Joint Venture

Compliance measured each April on a 3 year rolling basis. Company’s share of JV flying
measured in EASKs (equivalent available seat kilometers) and will be 50% +/- 1.5%

Joint venture area defined - generally comprises North America (Canada, US, Mexico) and
Europe (including Moscow)
79

Delta (cont’d)



Restrictions on changes to geographic scope, production balance (share of flying),
and competing operations
Permitted to place DL code on Hawaiian only within the state of Hawaii
Hawaiian

Prohibit the Company from entering into marketing and related arrangements that permit
another air carrier to utilize the Company’s designator code, name, logo or marks unless:

The Express Carrier only conducts operations (i) within Hawaii or (ii) in markets that
provide passenger feed to or from company DC-10 ops on the West Coast;

The Express Carrier conducts no operations of any kind between any of HNL, LIH, ITO,
KOA and/or OGG that utilize the Company’s code, name, logo or marks; and

The Company will neither furlough any pilots nor reduce block hours of DC-9 or
equivalent jets within Hawaii as a result of Code Share or Express operations.

The Company must demonstrate that no Code Sharing Agreement or Express Carrier
operation will result in the displacement of any pilot from the pilot’s Category.

The Company shall not permit any other carrier to utilize the code, name, brand, logo,
trademarks, livery or paint scheme without the express written consent of the Association (a)
within Hawaii, (b) between Hawaii and any other point in the US/Canada, or (c) between
the Hawaii and any point in the South Pacific.
80

JetBlue


Not Listed
Southwest


Flying w/ a Codeshare/Marketing Agreement by non-Company pilots shall not be performed

Codeshare/Marketing Agreements shall not include revenue guarantees by SWA for the benefit
of a Codeshare. Any exceptions must be agreed by the Association.

Company may Investment in a Codeshare partner as long as not used to establish a de facto
subsidiary or alter ego carrier

Company may provide financial assistance to a Codeshare partner at the prevailing
market/industry rates. Any exceptions must be agreed by the Association.

A Codeshare/Marketing Agreement shall never cause a pilot furlough.
Domestic Codeshare


Codeshare for Regional Aircraft Flying


SWA not enter into a domestic Codeshare Agreement in the US without agreement of pilots.
SWA not enter domestic or trans-border code share regional except to provide inter-island
service in Hawaii/Caribbean.
Near International/Trans-Border Codeshare Measurement

a. Near International/Trans-Border Codeshare are flights that include a segment btwn
Canada/Mexico/Caribbean and continental US SWA city.
81


b. Trans-border segment ASMs flown by SWA Near International/Trans-Border partners shall not
exceed (4) percent of total ASMs flown by SWA in the previous calendar year, excluding ASMs
flown by SWA on Near International/Trans-Border flights, as measured on a one for one ASM
basis, to include each common city pair.


Other Codeshare


i. SWA ASMs using the ASMs reported in the SWA annual report
The Company will not enter into any other Codeshare and/or Marketing Agreement without the
agreement of the Association.

The Company will meet and confer regarding any proposed/changing Codeshare and/or Marketing
Agreement prior to implementing such change.

The Company agrees to demonstrate to SWAPA that any Codeshare and/or Marketing Agreement is
not being used as a substitute for Company growth

The Company shall not allow its code to be used on flights of foreign carriers carrying local revenue
passengers or cargo traffic between airports within the United States or its territories.
Spirit

The company may enter into a code-share agreement, a marketing agreement, an interline
agreement, or a pro-rate or block space agreement, so long as such agreements do not result in the
furlough of any pilots.
82

INTERNATIONAL
CODESHARE (CONT’D)
United

The Company may maintain the existing Domestic Code Sharing Agreements with (i) US Airways, and (ii)
Great Lakes, Gulfstream/Silver Airways, and Cape Air, provided the Domestic Air Carriers listed in (ii) only
operate Regional Aircraft.

The Company may enter into or maintain Domestic Code Sharing Agreements for flight operations
between airports within Alaska and Hawaii.

The Company will not permit Domestic Code Share Flying between Company Hubs or to or from a
Company Hub unless such Flying is between a Company Hub and the applicable Domestic Code Share
Carrier’s Hub.

The number of ASMs of code sharing flying conducted by the Domestic Code Share Carrier from the
Company’s Hubs to the Domestic Code Share Carrier’s Hubs cannot exceed the Domestic Code Share
Carrier Hub ASM Ratio

For each Rolling Twelve-Month Period measured each calendar month (with the first measurement
occurring the twelfth calendar month after the Ratio Date), the ratio between the number of domestic
ASMs of Hub to Hub Flights scheduled by the Domestic Code Share Carrier bearing the Company’s
Designator Code and the number of ASMs of Hub to Hub Flights scheduled by the Company bearing the
Domestic Code Share Carrier’s designator code (the “Schedule Ratio”) will not exceed one hundred and
twenty percent (120%) of the Domestic Code Share Carrier Hub ASM Ratio.

The number of ASMs in flights conducted by the Domestic Code Share Carrier carrying the Company’s
code may not exceed the Domestic Code Share Carrier ASM Ratio:
83

United (cont’d)

Flights scheduled by the Company bearing the Domestic Code Share Carrier’s designator code
(the “Domestic Code Share Carrier Schedule Ratio”) will not exceed one hundred and fifteen
percent (115%) of the Domestic Code Share Carrier ASM Ratio.

Domestic Code Sharing Agreement with a Domestic Code Share Carrier that at the time
operates fewer than one-half (1/2) of the number of ASMs operated by the Company, if the
number of ASMs of Domestic Code Sharing Agreement Flights scheduled by the Domestic Code
Share Carrier bearing the Company’s Designator Code equals no more than one hundred
twenty-five percent (125%) of the number of ASMs of Domestic Code Share Flights scheduled by
the Company bearing the Domestic Code Share Carrier’s Designator Code

In any Rolling Twelve-Month Period the Company will not Schedule or permit the Scheduling of
aggregate ASMs of Foreign Code Share Flying operated by any Foreign Air Carrier that is not
party to a Revenue Share Agreement with the Company or Company Affiliate between the
United States and Territories and a Foreign Airport exceeding one hundred twenty-five percent
(125%) of the aggregate Scheduled ASMs of Company Flying bearing that Foreign Air Carrier’s
Designator Code.

The Company will not Schedule or permit the Scheduling of Foreign Code Share Flying from or to
a Company Hub unless the other airport in the Market (i) is a Hub of the applicable Foreign Air
Carrier (including such carrier’s Foreign Air Carrier Affiliates) outside the United States or (ii) is
another Foreign Airport in a country which contains a Hub of such Foreign Air Carrier

The Company may not place its Designator Code on any Foreign Air Carrier Flight on the
shared International Route which would exceed the Differential number of Flights by more than
two (2)
84

United (cont’d)

In the event the Company or a Company Affiliate enters into or maintains a Revenue Share
Agreement with one or more Foreign Air Carriers, the Scheduled Block Hours of Company Flying
between the United States and Territories and the foreign country or countries covered by the
applicable Revenue Share Agreement in each Rolling Twelve-Month Period will be not less than
ninety percent (90%) of the Scheduled Block Hours of Company Flying between the United States
and Territories and foreign countries covered by the applicable Revenue Share Agreement.

If the aggregate of Scheduled Block Hours flown between the United States and Territories and
Foreign Airports within the geographic scope of the applicable Revenue Share Agreement by all
Domestic Air Carriers (excluding Company Flying) decreases during a Rolling Twelve-Month Period in
comparison to the applicable Base Period, the percentage required for the Rolling Twelve-Month
Period shall be reduced by fifty percent (50%) of the percentage of that decrease in Scheduled
Block Hours.

Measured on a Rolling Twelve-Month basis for each Revenue Share Agreement, the Company’s
revenue from that Revenue Share Agreement associated with Flights that are (1) operated by the
Company between the United States and Territories and Foreign Airports or between Foreign Airports,
and (2) covered by the applicable Revenue Share Agreement, shall not exceed one hundred thirty
percent (130%) of the total revenue onboard Company Flights that are (1) operated by the
Company between the United States and Territories and Foreign Airports or between Foreign Airports,
and (2) covered by the applicable Revenue Share Agreement.

If there are no Company Flights covered by a Revenue Share Agreement, meaning that total
revenue onboard Company Flights under this Revenue Share Agreement equals $0, then (2) the
Company may not receive any revenue from Air Carrier parties to the applicable Revenue Share
Agreement, because the Company receipt of such revenue would exceed the 130% limit.
85

CONT`D

Transcription

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